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Making An Independent Contractor Agreement
In order to classify an individual on whether he is an independent contractor or an employee, three things must be considered: his relationship with the other party his ability to control his finances and time his ability to control his behavior and transactions Contents of the Agreement In making any contract, it is important that all the terms of the agreement and the possible sanctions for the party who did not abide by these terms are indicated. This would prevent foreseeable disputes among parties and will clearly limit their responsibilities and obligation. A good contract must contain: Date and place Identification of both parties Engagement Amount of compensation to be paid by the employer Guarantee of the services to be rendered by the independent contractor Relationship agreement Proprietor rights Confidentiality agreement Representation of the contract Terms and termination of the contract Solutions and penalty The content of independent contract agreement may vary in each state so to be sure, it is better to indicate all the necessary provisions and have an expert lawyer review or revise the agreement. Advantages and Disadvantages Being an independent contractor has its pros and cons. It gives you more space and ability to increase your income but at the same time, you will be held more liable for all the damages that you may inflict. Naturally, an employer cannot be held liable for the damages sustained by the independent contractor unless: The independent contractor is harmed inside the property of the employee. The nature of the services rendered is very risky. The independent contractor is being treated and operates as an ordinary employee or an agent. Unlike employees, an independent contractor doesnt have to work for a single employer. His services can be availed by two or more parties at the same time depending on his ability to utilize his resources. Independent contractors are free to set the rules of his services for as long as it would not violate any existing contract with other parties. But on the other hand, they are also not covered by any employees compensation or unemployment benefits provided to employees. Also, computing the income tax for these independent contractors is far more complicated than that of a regular employee. To identify ones status, it is best to call business lawyers who can help you in determining whether you are an independent contractor a regular employee. They are also capable of evaluating the validity of an independent contractor agreement between parties. Article Directory: http://www.articledashboard.com Visit our www.expertlosangelesattorney.com/>website to learn more about independent contractor agreement. Dial our toll free number for legal assistance. |
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